Press release - Ad hoc announcement pursuant to Art. 53 LR

LEM announces results for 9 months 2021/22: momentum
continues despite supply chain challenges
Geneva, Switzerland, 04 February 2022 – LEM (SIX: LEHN), a leading global company in electricalmeasurement for industry and automotive applications, announces 9 months results for 2021/22(April-December) compared to 2020/21:•Sales increased by 26.2% to CHF 275.5 million (CHF 218.2 million); at constant exchange rates,
sales improved by 24.3%•The company benefits from a diverse global distribution of sales, led by China and Europe:– China CHF 106.5m (38.7% of total)– Europe CHF 84.8m (30.8% of total)– North America CHF 24.3m (8.8% of total)– Rest of World CHF 59.7m (21.7% of total)•Bookings nearly doubled to CHF 436.9 million (CHF 222.3 million)•

R&D up by 13.6% to CHF 22.5 million (CHF 19.8 million), but declined to 8.2% of sales (9.1%)•EBIT rose by 47.1% to CHF 64.2 million (CHF 43.6 million); the EBIT margin increased to 23.3%(20.0%)•Net profit for the period rose by 49.1% to CHF 53.7 million (CHF 36.0 million)

Frank Rehfeld, Chief Executive Officer, said: “Our business continued its strong momentum fromthe first half of the year and we expect to celebrate the 50th anniversary of LEM with all-time record
sales. We could have sold even more and were disappointed not to be able to satisfy customer
demand, despite our best efforts to overcome the ongoing supply chain challenges. Our global
bookings remain at record levels, with customers firmly committing to orders over longer time horizons.
China, Europe and Asia continue to lead our growth.
Our Industry segment is benefitting overall from the acceleration of decarbonization and electrification
across the world. Investment confidence remains solid in all our businesses, helped by government
policies and infrastructure development. The well-reported shortages of semiconductors and othercomponents affected all our businesses, particularly the Automotive segment, although we remain
encouraged by the fundamental transition towards Electric Vehicles.”Andrea Borla, Chief Financial Officer, remarked: “Our strong EBIT performance continues to bedriven by top-line sales growth and vigilance over costs, while we still are investing significantly in R&D.
We are slightly increasing our full year sales outlook to around CHF 360 million, although supply chain
issues will impact our business for several quarters to come.”

LEM Holding SA

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Industry segment: strong growth despite capacity constraints
9 months sales in the Industry segment totaled CHF 212.9 million, up 28.8%. At constant exchange
rates, sales improved by 27.0%. All our businesses and regions continue to benefit from the return ofinvestment confidence and customer demand, although our sales were held back by supplier and partly
by capacity constraints. The fundamentals remain strong, as decarbonization and electrification
accelerates across the world. The Drives business is at its mid-cycle, and benefited from demand forsmall and medium power applications, including tooling machines and HVAC (Heating, Ventilation, andAir Conditioning) as well as end-consumer products, such as heat pumps. Renewable Energy
continues to grow due to government policies supporting wind and solar energy. The infrastructure
investment for e-mobility is driving the successful rollout of our new DC meter and this market is onlyat an early stage of expansion. Demand in the test and measurement sector for batteries and EVs anddemand for medical equipment increased sales of our High Precision sensors. Our Traction business,with its long investment horizons, has returned to growth with demand coming from the Europe andIndia.
Europe (+37.3%), China (+20.2%) and Rest of World (+33.8%) benefited from the demand acrossDrives, Renewables, and High Precision. Europe continues to be our largest market. North America(+21.7%) benefited from the demand for Drives, but less so for Renewables. Global orders nearly
doubled for the 9 months, as customers firmly committed to orders over longer time horizons.
2021/222020/21

96.5

69.7

Renewable
EnergyTractionHigh precision

77.6

61.4

31.6
7.2

28.8
5.5

Total Industry

212.9

165.4

in CHF millions

Businesses
DrivesChange Comments+38.4% • Small & medium power applications• Manufacturing capacity investment
in semiconductors+26.5% • China solar driven by infrastructure• Europe boosted by DC meter+9.7% • Europe and India driving demand+31.8% • Demand for test and measurement
products still picking up• Medical recovered to pre-pandemic
level+28.8%

Automotive segment: EV momentum continues to be impacted by supply chain issues
9 months sales in the Automotive segment totaled CHF 62.5 million, an increase of 18.4%. At
constant exchange rates, sales improved by 15.9% compared to 9 months last year. Q3 performancereflects the higher baseline of last year when global production had recovered from previous
shutdowns. Our output is constrained for the moment by the continued supply chain issues forsemiconductors and other components. These are affecting the entire sector, and somemanufacturers are obliged to revise production plans downwards. Q3 bookings are back to more
realistic levels, although for the full 9 months bookings more than doubled compared with 9 months
2020/21. This reflects the strong fundamental demand for EV solutions and our customers’commitments to orders over longer time horizons, but the industry’s ongoing challenges may takeseveral more quarters to be resolved.
Our largest market China grew by 40.3%, driven by consumer appetite for EVs and the launch ofseveral new vehicles. The pace of electrifications continues to grow in Europe (+11.3%), althoughsales in Q3 suffered due to the sector’s component shortages. North America showed negative
growth (-5.5%) compared with 9 months last year, as the transition to EVs is not quick enough tocompensate for the decline in demand for traditional combustion engine battery sensors. Rest ofLEM Holding SA

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World increased slightly by 0.5% reflecting a higher sales base, as these markets had been less
impacted by the pandemic in 9 months 2020/21.
2021/222020/21

Businesses
Battery Management
Motor ControlCharging Systems

34.5
25.5
2.5

31.5
18.8
2.5

Total Automotive

62.5

52.8

in CHF millions

Change Comments+9.5% • Significant drop in US 12V demand+35.8% • Strong demand spurred by EV cars
-1.5% • Product allocation impacted bysemiconductor shortages.
+18.4%

Improved profitability
Gross profit for 9 months rose by 29.3% to CHF 130.1 million (CHF 100.6 million), principally due tohigher sales volumes compared to 9 months last year. The gross margin improved by 110 basis points
to 47.2%, reflecting improved economies of scale.
We remain vigilant with overheads, so while SG&A costs were up by 13.6% to CHF 43.6 million (CHF38.3 million) to support the extra market demand compared with last year, they declined to 15.8% ofsales (17.6%).
We continue with our long-term investment in future applications with R&D up in absolute terms by
13.6% to CHF 22.5 million (CHF 19.8 million), although this decreased to 8.2% of sales (9.1%).
EBIT rose notably for the period by 47.1% to CHF 64.2 million (CHF 43.6 million), mainly due to theincrease in revenue. Consequently, our EBIT margin rose by 330 basis points to 23.3% (20.0%).
We posted a net profit for the 9 months of CHF 53.7 million, up 49.1% from CHF 36.0 million last year,
reflecting the improved EBIT. The net profit margin was 19.5% compared with 16.5% in the same
period last year.
Outlook
We continue to benefit from the fundamental drivers of electrification, renewable energy and mobility.
However, we still face headwinds from the impact of the pandemic on different markets, including
shortages for components such as semiconductors. For the full financial year 2021/22, the company
is slightly increasing its sales outlook to around CHF 360 million (CHF 301.0 million for 2020/21), andalso raising its forecast EBIT margin to around 22% (20.2% for 2020/21).

LEM Holding SAPage 3/6

Conference call and webcast
Frank Rehfeld, CEO, and Andrea Borla, CFO, will provide a presentation of the 9 months 2021/22
results today at 10:00 CET at a media and investor community webcast and conference call.
Listen to live webcast
https://78449.choruscall.com/dataconf/productusers/lem/mediaframe/47711/indexl.html
The press release, webcast slides, and the link to the webcast are available in the Investor Relations
section of the LEM website (www.lem.com/en/investors), where the recorded webcast will later also
be archived.
Dial-In Numbers
Switzerland & Europe:
UK:
USA:
Other countries:+41 (0)58 310 50 00+44 (0) 207 107 06 13+1 (1) 631 570 56 13
https://media.choruscall.ch/documents/Attended_DI_numbers.pdf

Financial calendar
The financial year runs from 1 April to 31 March
24 May 2022
Full-year results 2021/22
30 June 2022
Annual General Meeting of Shareholders for the financial year 2021/22
5 July 2022
Dividend ex-date
7 July 2022
Dividend payment date
LEM – Life Energy Motion
A leading company in electrical measurement, LEM engineers the best solutions for energy andmobility, ensuring that our customers’ systems are optimized, reliable and safe.
Our 1,500 people in over 15 countries transform technology potential into powerful answers. We
develop and recruit the best global talent, working at the forefront of mega trends such as renewableenergy, mobility, automation and digitization.
With innovative electrical solutions, we are helping our customers and society accelerate the transition
to a sustainable future.
Listed on the SIX Swiss Exchange since 1986, the company’s ticker symbol is LEHN.
www.lem.com
Contact: Investment community
Andrea Borla, Chief Financial Officer
Phone: +41 22 706 1250
Email: investor@lem.com
Contact: Media
Cabinet Privé de Conseils s.a. (CPC)
Nick Miles, miles@cpc-pr.com, mobile: +41 79 678 76 26
Michael Füglister, fuglister@cpc-pr.com, mobile: +41 78 839 07 62

LEM Holding SA

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Appendix
Consolidated income statement
April to December
In CHF thousands

2021/222020/21

ChangeSales

275'462

218'192+26,2%

Cost of goods sold(145'358)(117'607)

Gross margin130'104

100'585

47,2%

46,1%

Sales expense(21'592)(19'085)

Administration expense(21'969)(19'248)

Research & development expense(22'508)(19'817)Gross margin (in %)Other income

120

1'188

EBIT

64'15543'623

EBIT margin (in %)

23,3%

20,0%

Financial expense(367)(391)Financial income

220

124

Foreign exchange effect(2'098)

112

Profit before taxes

61'91043'468

Income taxes(8'186)(7'432)

Net profit of the period

53'72436'036

Net profit margin (in %)

19,5%

16,5%

LEM Holding SA+29,3%+47,1%+42,4%+49,1%

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Key Figures
2021/22

In CHF millions

Orders received

2020/21

Change

Q1

Q2

Q3

Q1

Q2

Q3

Q4

FY

Q3 - Q3

9M - 9M

Industry

110,8

101,3

102,8

47,555,763,9100,8267,8+60,9%+88,5%

Automotive

35,752,4

33,912,020,223,138,994,2+46,7% +120,6%

Total LEM

146,4153,7136,759,575,987,0139,7362,0+57,1%+96,5%

Q4FY

Book-to-bill ratio

Q1Q2Q3Q1Q2Q3Q4FY

Q3 - Q3

9M - 9M

Industry

1,51

1,44

1,48

0,79

1,06

1,21

1,68

1,19+22,4%+46,4%

Automotive

1,78

2,62

1,510,83

1,19

1,08

1,70

1,24+39,5%+86,4%

Total LEM

1,57

1,70

1,490,80

1,09

1,17

1,69

1,20+26,8%+55,6%

Q4

FYSales

Q1Q2Q3Q1Q2Q3Q4FY

Q3 - Q39M - 9M

Industry

73,270,469,459,852,852,859,9225,2+31,4%+28,8%

Automotive

20,120,022,414,517,021,322,975,7+5,1%+18,4%

Total LEM

93,390,491,874,369,874,182,8301,0+23,9%+26,2%Q4FYEBIT

Q1Q2Q3Q1Q2

Q3Q4FYQ3 - Q3

9M - 9M

Industry

19,218,5

17,612,312,1

11,4

13,649,4+54,9%+54,5%

Automotive

2,02,44,5

1,02,93,93,611,5+13,5%+13,3%

Total LEM

21,220,922,013,315,015,317,360,9+44,3%+47,1%Net profit of the period

Q1Q2Q3Total LEM

17,317,918,5

LEM Holding SA

Q4Q4FYFYQ1Q2Q3Q4FY

Q3 - Q3

9M - 9M

11,112,312,619,655,6+46,7%+49,1%

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